City of Tshwane to act against companies implicated in fraud

THE Democratic Alliance led government in the City of Tshwane has accused the previous office of the speaker of trying to siphon off millions through fraudulent invoices but the ANC has
denied any wrong doing.

The back and forth follows the tabling of a forensic audit report that uncovered that over R10 million worth of invoices submitted to the former Office of the Speaker for “work” done during the period 2014, 2015 and 2016 could not be corroborated nor was there justification for the payments.

The report, which was tabled at the City’s monthly Council sitting detailed how the suppliers
collectively claimed that a total of R28 172 203 was due to them.

However, the investigation revealed serious transgressions of supply chain management processes
as well as cases of possible fraud within the Office of the Speaker.

TACKLING FRAUD: Tshwane Mayor Solly Msimanga.

There were also solid indications that some suppliers had submitted invoices for work not done.

Based on the review of documentation provided to the investigators as well as consultations
conducted with the service providers, it was established that of the R28 172 203, only R11 372 255 could be verified and that the latter amount will be paid to eligible service providers.

Mayor Solly Msimanga noted the findings of the report as proof of the extensive corruption that characterised the previous administration.

“It is clear that rampant theft and fraud reigned supreme under the watch of the former mayor and
speaker. “Tshwane residents have been robbed of monies running into millions of rands which could have been used for the socio-economic development of the City and to create much-needed employment opportunities,” said Msimanga.
“Tax-payers’ money went into the pockets of the connected elite who had no regard for the financial
implications their actions were placing on the City and its people. Officials have a duty to use the
resources of the municipality in the best interest of the local community but they chose not to. It is as disappointing as it is unsurprising.”

The report found that certain entities did not exist but they had submitted quotations. The quotations were in fact intended to be cover quotes.

Some invoices were proved to be for services rendered in respect of ANC rallies including the erection of R114 000 worth of tombstones for individuals who were in the “struggle” in various political organisations yet this could not be verified.

Msimanga said among some of the recommendations approved by the council, the city would initiate steps to ensure that companies or persons found to have defrauded the city are barred from future business relations with the City of Tshwane.

He said they would also ensure that National Treasury blacklists companies or persons on the E-procurement data base that have defrauded the City and that the Speaker of Council and/or the City Manager institute legal action with regard to wrong doing based on the findings of the Forensic Audit.

The ANC, however, has hit back at Msimanga. Caucus spokesperson Lesego Makhubela said the report did not implicate any ANC members.
“We want to place it on record that there is no single leader of the ANC who has been implicated in
the report and that the statement released by Cllr Solly Msimanga is both unfortunate and baseless.
“It also contradicts a letter that has been written by the city manager of Tshwane Mr Moeketsi
Mosola which in part reads that ‘The reference made in the report to both councillors Matsena and Mosopyoe was in the context of the interviews and explanations given by officials in the office of the speaker. The forensic report does not make any findings against both councillors,” Makhubela
said.
“This witch hunt is not only targeted at the ANC so as to feed into the DA narrative that the ANC is
inherently corrupt, it is also targeted against black owned companies who have rendered services and supplied goods and are owed by the city, they are frustrated into liquidation.”

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